Defining a “Small Business”

The concept of a small business encompasses a variety of factors, including revenue, employee count, and the nature of the industry. Generally speaking, small businesses are defined based on their revenue (from $1 million to over $40 million) and number of employees (from 10 to over 500), with these figures varying significantly across different industries.
For example, a roofing contractor with annual revenues not exceeding $16.5 million qualifies as a small business. Surprisingly, $15 million in annual revenue might seem substantial, yet it’s essential to align IT expenditures with your business’s scale. For small enterprises, it’s advisable to keep IT costs minimal unless IT is a critical component of your business model.

The Need for IT Professionals in Small Businesses Whether to hire an IT specialist depends on various factors, including:

• •  The complexity of your IT infrastructure
  • Employee count
  • IT’s role in your operations
  • Budgetary constraints
  • Geographic location
  • Expansion plans
  • Security requirements
  • Customer demands

The decision between employing an internal IT team or outsourcing depends on each business’s unique needs, size, and reliance on IT. Nevertheless, an increasing number of small businesses are opting for managed IT services for their IT requirements.
This trend can be attributed to the cost-effectiveness of outsourcing IT. For most businesses, the complexity of their IT systems doesn’t justify the expense of maintaining a dedicated in-house IT team, making managed IT services an attractive alternative.

IT Services for Small Businesses Managed IT Services in Toronto and GTA offer comprehensive IT management solutions, catering to various IT needs both remotely and onsite, including:

• • Cybersecurity measures, part of most managed IT service packages, encompass security protocol implementation, web-based application risk management, and data leak prevention.
  • Network and Infrastructure Management to ensure the seamless operation of the company’s digital framework.
  • Compliance and Policy Enforcement to guarantee adherence to company policies and regulatory compliance.

Choosing Between Managed IT Services and an In-House IT Team

Pros & Cons for Small Businesses: Managed IT Services:

1. 1. Pros: Cost-efficient for businesses with few workstations, offering proactive solutions to prevent IT issues and predictable budgeting with a flat monthly fee. According to CompTIA, 50% of companies report saving 1-24% on annual IT costs by outsourcing, with 33% saving 25-49%, and 13% saving over 50%.
   2. Cons: Potential security risks with less reputable providers and possible misalignment with the company’s goals, particularly with larger MSPs servicing numerous clients.

In-House IT Team:

1. Pros: Greater control over technical operations with immediate issue response, a deep understanding of the company’s specific IT needs, and direct accountability..
2. Cons: Higher costs related to salaries, benefits, and other employee expenses, along with the time and effort required to maintain a competent IT department.

When to Outsource IT to a Managed Service Provider Small business owners or managers should consider outsourcing their IT when their operation scales to five or more workstations, opens additional locations, or expands the team.
Ultimately, the decision hinges on your IT needs’ complexity, operational scale, and the cost-benefit analysis of outsourcing versus in-house hiring. In most scenarios, managed IT services emerge as the most cost-effective and efficient solution, saving on IT salaries and offering superior service more swiftly and effectively than an in-house team could.
Considering the resources required to develop a reliable, expert team of IT professionals, it often makes more sense for small businesses to reach out to a local MSP in Toronto and GTA for their IT needs.